The terms for buying with CLTB are detailed in the regulations of CLTB. They will be verified at the moment when you apply to be a candidate for an apartment put up for sale.
In brief, the terms of purchase are as follows:
CLTB sells housing but does not give mortgage credit. In order to buy, you must apply for a loan from the Housing Fund or from another credit institution, and it is them who you will repay. Taking out a loan involves paying interest.
Buying with CLTB means living with future neighbours of a co-owned building. There will be numerous meetings with the group arranged by all the future residents in order to:
It is a process that can take some time and that demands the availability of the entire household.
The defining feature of the “Community Land Trust” model is that land ownership and home ownership are separated, which ensures that housing remains at an affordable price generation after generation. CLTB remains the owner of the land on which your housing is built.
Implications for you as the homeowner:
When you are an owner of a CLTB house:
Particular situations: exceptional exemption with agreement from CLTB
The maintenance of a building is costly. Since you are buying a house that is co-owned, you must pay for the maintenance expenses of the common areas (entrance lobby, lift …), as well as insurance, etc. You must be able to buy your own house and also to pay for the common expenses.
Repayment of the loan at the bank
According to your situation (approximately 1/3 of your net income/month)
Lease fee to pay to CLTB
10€ / month
Property tax: +-1,000 to 1,200€/year for a new house
Anticipate 80-100€ / month
Maintenance of your house (repairs)
Anticipate 20€ / month
Co-ownership expenses: Rolling funds (for minor maintenance in the building) + Reserve funds (major work in the building). The contribution varies according to the size and the type of apartment.
Anticipate min. 140€ / month
Utilities (water, electricity, heating)
In accordance with your usage
Resale of a house is always managed by CLTB, which selects the next housing candidate from the waitlist.
The resale price will always be calculated with this formula:
Initial investment =
Initial contribution – Costs (notary; loans, taxes)
+ 25% of the property added-value
+ consideration of the work performed during occupation
(and brought to the attention of CLTB)
Initial contribution including costs: 140,000€ – Costs : 15,000€
>> Initial investment = 125,000€
Value at market price at the moment of purchase: 150,000€
Value at market price at the moment of resale: 160,000€
>> Added-value of 10,000€
Resale price =
125,000€+ 2,500€ (or 25% of the added value) = 127,500€
The Housing Fund also has a pre-emptive right on the properties that it finances and can request that you pay compensation if you resell within the first 5 years of your purchase and if you make an added-value from the sales price in regards to the property market value from the time of purchase.
What happens if my income increases? Will the sale price be reviewed?
No, once the sale price is set, it will not change. All the better if your income increases.
Heirs always have the right to the “accrued” value of the property (meaning the monetary value of the property).
If they want to stay, it is possible during the first 30 years following the date of purchase.